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My Introspective

by Laurus Nobilis
My BrainCast


Lean Principles in Logistics (I)


Lean Concept gives the opportunity to the company to increase the service level, while reducing the cost. This is possible through strict implementation of lean tools.

LEAN concept provides a fundamentally different way of looking at operations of company. The aim of LEAN principle in logistic is to reduce the cost base and increase service levels to the customer by eliminating non-value added activities. The lean principles are executed by conducting systematical implementation of different lean tools... 

Read More - Posted: Aug 2012

Logistic Outsourcing (E)


What is the benefit of outsourcing of certain segments of business? What is the power of outsourcing for the company and the logistic agent?

Logistic outsourcing is one of the methods of increasing organizational efficiency. Since logistics is bulky part of the business, its outsourcing can simplify activities related to repetitive operations... 

Read More - Posted: Feb 2012

DIFOTAI – Delivered In Full On Time Accurately Invoiced (E)


How does customer service level influence the competitiveness and position in the market? Why and how the service level should be measured?

The effectiveness of DIFOTAI can be influenced by proper execution of all functions. Efforts need to be synchronized, since errors created within one department can cause chain reaction in other departments. Success of the DIFOTAI and service to the customer is dependant on multiple factors... 

Read More - Posted: Dec 2011

Integration vs. Non-Integration (E)


What makes a difference between companies with and without integrated supply chain. What is the competitive advantage of companies with integrated processes?

With an integrated supply chain, firms gain more of a customer service focus. They also reduce waste and become faster and more flexible, while maintaining the highest of quality standards. Overall, they are gaining advantage versus competition, and keep implementing continous improvement to stay in that position. Probably these improvements are something that every organization needs... 

Read More - Posted: Oct 2011

Supply Chain Management (E)


What was the evolution history of supply chain management? What are the main components of supply chain? How big is the importance of supply chain integration?

Supply chain management plays a very important role within the company. The supply chain generate most of the costs of the company, due to the width and complexity of the function (manufacturing, warehouse, distribution). Any inefficiency can create tremendous negative impact to the company. On the other hand, good supply chain management can bring huge benefits and competitive advantage to the company... 

Read More - Posted: Jul 2011

Choosing the Right Distribution Model (I)


There are several logistical methods of supplying product to the market. They rely on different extent of use of 3rd parties.

Logistic function spans the supply from the company to the customer. The product goes through warehouse and distribution system, until it reaches the customer. Company can deliver the product directly, but very often it chooses other types of distribution. The company can use 3rd parties to cover the part of supply chain. There are several different types of distribution of product... 

Read More - Posted: Nov 2010

Stock Out Measurement (I)


What are the methods of stock out measurement? What are the main methods of stock out measurement?

Stock Out ( Out Of Stock - OOS ) is situation when the product is temporary unavailable on the shelf or in the warehouse. The stock out is occurring from time to time on almost all SKUs. The stock out shows up as a result of the gap between the stock planning and actual sales demand. In some cases it can appear as a result of production breakages or extremely prolonged supply lead time... .

Read More - Posted: Nov 2009

Forecasting Methods: Product Segmentation Matrix (E)


What is the product segmentation matrix? What is impact of product segmentation matrix to service level?

The product segmentation matrix ( zoo chart ) can be useful approach to dement planner. The zoo chart gives insight into big picture of basic performance characteristics of SKUs; their sales contribution and forecast accuracy. As the result of increased forecasting accuracy the whole supply chain will benefit. The inventories will be within normal range, the stock outs will reduced, warehouse and distribution will be optimized and the service level toward customer will be increased... 

Read More - Posted: Nov 2009

Forecasting Methods: Segmentation Of Products (E)


What is the segmentation of products? What is the roll of product segmentation as approach to demand forecasting?

High forecast accuracy is the backbone of effective demand planning. High forecast accuracy enables proper planning of inventories. Right level of inventories enables optimal working capital engagement, fresh product, no stock-out, optimal flow of process and satisfied customer. Everything starts with forecast. If forecast accuracy is high, other business processes can be planned in a efficient manner... 

Read More - Posted: Nov 2009

Forecasting Methods: Cross Functional Demand Forecasting (E)


What are recommended forecasting methods? Who are the stakeholders that are involved in forecasting methods?

Demand forecast is the cross functional document that is aligned for the incoming period. The Sales forecasting methods should involve all stakeholders, not just sales department. Although the sales can set volume targets, they can be unrealistic in some cases. They can be higher or lower than real demand, due to tactical reasons, but they can also be reflection of wishful thinking than the real demand forecast...

Read More - Posted: Aug 2009

Demand Forecasting (E)


What is the Demand Forecasting? What is the reflection of demand forecasting to inventory management, stock-out and write off?

Demand for the product is the basis for the sales plans, as well as supply chain planning. Once the demand is determined it is possible to estimate market share and potential sales volume. Demand forecasting is also basis for supply chain activities. Procurement, production, warehousing and distribution depend on total potential volume, average cycle volume as well as maximum demand peaks... 

Read More - Posted: Aug 2009

Globalization Economy (I)


What are the causes of economy globalization? What is the role of supply chain in economy globalization?

The trend of global economy globalization gives a real challenge to the supply chain. A global company is more than a multinational company. In the global business materials and components are shipped worldwide and products may be produced offshore and sold in many different countries...

Read More - Posted: Jul 2009

Supply Chain Competition (E)


What is the role of supply chain in competitive markets? What is the relation between product excellence and service excellence?

Today competition between two companies is actually competition of two supply chains. This is caused by the fact that company can not act as independent, isolated island, but as part of whole supply chain. The company need to create value delivery systems that are more responsive to fast-changing markets and is much more consistent and reliable in the delivery of that value... 

Read More - Posted: Jul 2009

Lead Time Definition (I)


What is definition of lead time? What is the difference between traditional definition of lead time and strategic lead time?

Lead time is traditionally defined as the elapsed period from receipt of customer order to delivery. In today's environment there is a wider perspective that needs to be taken. The real lead time is the time taken from the design board, material procurement, production and distribution to the end market... 

Read More - Posted: Jun 2009

Supply Chain and Competitive Advantage (E)


What is the difference between logistic management and supply chain management? What is the contribution of supply chain to company's competitive advantage?

This concept of supply chain management is relatively new and is different from logic of logistics. Logistics management is primarily concerned with optimizing flows within the organization, whilst supply chain management recognizes that internal integration by itself is not sufficient...

Read More - Posted Jun 2009

Demand Volume Leveling (E)


Why is the demand fluctuating during the month? What are the effects of demand level fluctuation to Supply Chain and the company? What are the methods of weekly demand volume leveling?

The uneven spread of the volume through the weeks is common for fast moving consumer goods businesses that have aggressive targets. This is causing the weekly volume to have ascending trend through the month, from very low to very high. From perspective of supply chain it creates a great problems... 

Read More - Posted: Jun 2009

Transforming of Supply Chain to Value Chain (E)


What is the relation between Supply Chain and Value Chain? What are the levers that moves Supply Chain to Value Chain?

One of the biggest steps forward in modern management is the change of the approach that places the focus on providing the utmost value in the eyes of customer and consumer. Since the cost cutting and price-off strategy is not enough guarantee for sustainable market advantage on the long run, it is necessary for the company to provide the value that will justify the price of the product... 

Read More - Posted: May 2009

Integrative Mission of Supply Chain (E)


What is the role of Supply Chain within the company? What is the best way to close the gap between Marketing and Production?

It is obvious that the mission of supply chain is to plan and co-ordinate all those activities necessary to achieve desired levels of delivered service and quality at lowest possible cost. Supply Chain must therefore be seen as the link between the marketplace and the supply base. The Supply Chain spans the organization, from the management of raw materials through to the delivery of the final product ... 

Read More - Posted: May 2009

Supply Chain Optimization (I)


What is the Supply Chain Optimization? What is the role of Demand planning in Supply Chain Optimization? How can Inventory Planning contribute to Supply Chain optimization?

The competitive market is imposing rules to all participants in the game of market competition. The company that strives to become successful in the market needs to excel in one of two segments, but ideally in both; product value advantage and production cost advantage ... .

Read More - Posted: Jan 2009

Supply Chain Outsourcing (E)


What is the Supply Chain Outsourcing? What is the organizational efficiency element of Supply Chain Outsourcing? Where the cost advantage of Supply Chain Outsourcing comes from?

What is the Supply Chain Outsourcing? What is the organizational efficiency element of Supply Chain Outsourcing? Where the cost advantage of Supply Chain Outsourcing comes from?

Read More - Posted: Jan 2009